# IBC Infrastructure

Orbit is built onto of IBC v2 (Eureka) , which offers a more secure, efficient, and decentralized way to transfer assets and data between blockchains. Unlike traditional bridges like Wormhole, Axelar, and LayerZero, which rely on external parties, IBC ensures direct blockchain-to-blockchain communication without added trust assumptions.

For yield aggregation infrastructure this is key, as moving assets around consistently cross-chain increases risk. Building ontop of IBC gives Orbit a significant edge in speed, security and cost reduction.

With IBC eureka upgrade, Ethereum, Solana and other EVM chains will also be connected, ensuring that Orbit can access a wider base of users and wider base of available yields.

### **How IBC v2 (Eureka) is Different**

**No Middlemen, No Extra Risk**

* Most bridges use external validator networks or relayers to approve transactions, creating central points of failure. There have been a long list of hacks and exploits on traditional bridging infrastructure.
* IBC removes the middleman, using each blockchain’s own security to verify transactions directly.

**Finality & Cost Efficiency**

* Bridges often introduce delays and extra transaction fees.
* IBC transactions finalise instantly at the consensus level with lower costs because there’s no need for relayers (It uses relayers to pass messages but not to approve or verify them).
* This means being able to access multiple chains, but benefitting from lower fees and superior tech.

**Native Assets, Not Wrapped Tokens**

* Many bridges create wrapped tokens, which can be hacked or depeg.
* IBC transfers native assets directly, avoiding these risks.

<table><thead><tr><th>Feature</th><th>IBC v2 (Eureka)</th><th width="326">Traditional Bridges (Wormhole, Axelar, LayerZero)</th></tr></thead><tbody><tr><td><strong>Security</strong></td><td>Each blockchain verifies its own transfers</td><td>Relies on external parties (can be attacked)</td></tr><tr><td><strong>Finality</strong></td><td>Instant &#x26; direct</td><td>Slower, relies on external confirmations</td></tr><tr><td><strong>Fees</strong></td><td>Low (no extra relayers)</td><td>Higher (relayer &#x26; gas fees)</td></tr><tr><td><strong>Native Assets</strong></td><td>Yes (no wrapping)</td><td>No (creates wrapped tokens)</td></tr><tr><td><strong>Smart Contract Risks</strong></td><td>Minimal</td><td>Higher (bridging contracts can be exploited)</td></tr></tbody></table>

### **What About ICQ and ICA?**

Orbit also takes advantage of Interchain Queries (ICQ) and Interchain Accounts (ICA) modules that are native to IBC, which let it:

* Fetch real-time data from other chains securely (**ICQ**).
* Execute transactions on remote chains without needing extra contracts (**ICA**).

This expands what IBC can do, beyond just moving tokens—something traditional bridges cannot match without extra trust assumptions.

| Feature                   | IBC (ICQ & ICA)                                          | Non-IBC Bridges (Axelar, LayerZero, Wormhole)                     |
| ------------------------- | -------------------------------------------------------- | ----------------------------------------------------------------- |
| **Data Retrieval**        | Direct query from source chain (ICQ)                     | Oracles or multi-sig relayers (can be attacked)                   |
| **Cross-Chain Execution** | One chain directly controls an account on another (ICA)  | Requires deploying extra contracts + trusting external validators |
| **Trust Model**           | No intermediaries needed                                 | Relies on third parties (signers, oracles, relayers)              |
| **Cost & Efficiency**     | Lower (relayers have no execution authority, fewer fees) | Higher (gas + relayer fees + contract deployment)                 |

### **Why Orbit Wins with IBC**

By using IBC v2, ICQ, and ICA, Orbit provides a faster, cheaper, and safer cross-chain yield aggregation experience and native cross-chain deposits and withdrawals. Instead of relying on trusted intermediaries, Orbit leverages true blockchain interoperability—the way it was meant to be.


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